THREE FORECLOSURE PHASES

First Phase of The Foreclosure Process

The "notice of default" may be the only notice you receive in a non-judicial sale state so read all correspondence very carefully for any indication that the property might be moving to the foreclosure sale stage. Click Here for More on "Judicial Sale v. Non-Judicial Sale States"

Understanding the requirements for the notice of default as well as knowing the difference between important loan documents like the promissory note and mortgage or deed of trust is essential to protecting your foreclosure rights and developing a foreclosure solution that works for you. Click Here to Learn More About the "Notice of Default" and the Difference Between the "Promissory Note" and "Mortgage."

It's also important before going any further to determine who owns your mortgage and who you should be working and negotiating with. As you'll see in our discussion of "who owns your mortgage", the answer can be quite complicated and it's entirely possible that a lender offering a trial loan modification and actually accepting your payments is not the real owner of the loan so its importance can't be overstated. For those of you with a second mortgage in foreclosure, the same principles apply.

Click Here for More on "Who Owns Your Mortgage."

Click Here for More on "Your Second Mortgage in Foreclosure"

In reality, few if any homeowners can make large lump sum payments to resolve past due balances when they were unable to make the original monthly payments, but the first stage of the mortgage foreclosure process is still a valuable time to negotiate with lenders for either a loan modification or short sale which are both discussed in more detail in our "Options" section. Regardless of the outcome of your negotiations, every month a foreclosure suit is delayed is an opportunity to save money otherwise used for mortgage payments.

This is also an important time to figure out if you have "Mortgage Insurance" which greatly increases your chances of avoiding foreclosures. If you do have mortgage insurance be sure to read our section on "What Mortgage Insurance Can Do For You."
Click Here For More Information on How "Mortgage Insurance" Can Help You Avoid Foreclosure.

There are no real guidelines to determine when a lender will stop negotiating and file a foreclosure lawsuit against you which is why you need to understand how foreclosure works and be prepared to implement your strategic plan to stop the foreclosure sale. However, the longer you keep lines of communication open and continue to work with the lender towards modification or some type of assistance, the more likely the lawsuit will be delayed. In many circumstances the lender will also continue to work with you even while the foreclosure lawsuit is ongoing-a process known as "dual tracking"- so be prepared to adjust your plan to stop foreclosure sales at all times.

Second Phase of The Foreclosure Process

If you can afford to hire an attorney, now is the time. Depending on the state you're in and how you were served with a copy of the lawsuit, the response is typically due in either twenty or thirty days and a qualified lawyer with foreclosure defense experience is in the best position to advise you of your rights. The attorney will also make sure you don't miss filing deadlines or overlook any important legal defenses.

However, if you can't afford to hire an attorney don't worry because we can help as there are several foreclosure alternatives discussed in our "Options" section along with the necessary sample documents to help with each alternative. Despite the availability of these options, it's also relatively easy to defend your own lawsuit particularly if you're just trying to delay the suit until the economy and/or your situation improves when you'll be in a better position to obtain and afford a loan modification.

To help defend your own foreclosure lawsuit, we have provided sample documents and detailed instructions with no charges or fees for the materials and access to the sample documents. By simply filling out the membership information on our home page you'll have 24/7 access to all of our sample documents for as long as you need. All we ask in return is that you tell your friends and family about our website so we can help them as well.

Overall,what happens once you're sued depends on your goals and what you're trying to accomplish. If you were misled or taken advantage of by the lender, or if the wrong party is trying to force a foreclosure sale when they don't own the note or mortgage, you may have no choice but to defend the suit. If your case is strong enough against the lender, you may find an attorney willing to defend the suit and file a counter-lawsuit against the lender for a percentage of what you win in damages. If you can't afford an attorney or find one willing to take the case for a percentage of the recovery with no upfront fees, you have no choice but to defend yourself so read on, get educated about the mortgage foreclosure process and feel confident because we're here to help and you're not giving up without a fight! It's your home and worth whatever it legally takes to keep the home if at all possible and for as long as possible.

Final Phase of The Foreclosure Process

Another important issue during this phase is avoiding "Deficiency Judgments' which come from the difference in your loan amount and how much the property is sold for at the foreclosure sale. Click Here for More "Deficiency Judgments" Even at this late stage, all hope is not lost as you still have options to stop house foreclosures and stop foreclosure sales. Although we have discussed foreclosure alternatives in detail in our "Options" section, briefly you can file foreclosure bankruptcy which will immediately stop foreclosure sales set for your home and significantly delay the mortgage foreclosure process overall. This may be an essential step in your stop foreclosure program depending on your specific circumstances as may be your right to appeal foreclosure judgments.

Again depending on the facts involved in your case, filing notice of appeal may or may not stop foreclosures now but will preserve your rights and may result in having the property returned to you, even after the sale of your home if you win the appeal. Additionally, you can always continue to pursue loan modifications and short sales until the property is actually sold as well as having a friend or relative purchase your property on your behalf at the auction and foreclosure sale.

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